Investment in Real Estate

6 Months Ended

Jun. 30, 2015

Real estate by property type and segment includes the following:



	June 30, 2015		December 31, 2014
Development property:
Residential real estate	$	103,267	$	102,408
Commercial real estate	55,153		59,405
Leasing operations	2,464		3,680
Forestry	3,069		3,278
Corporate	2,111		2,019
Total development property	166,064		170,790

Operating property:
Residential real estate	$	8,084	$	8,084
Resorts and leisure	109,204		110,136
Leasing operations	75,796		72,045
Forestry	18,729		18,839
Other	50		50
Total operating property	211,863		209,154
Less: Accumulated depreciation	61,074		58,132
Total operating property, net	150,789		151,022
Investment in real estate, net	$	316,853	$	321,812

Development property consists of land the Company is developing or intends to develop for sale or future operations. Residential real estate includes mixed-use resort, primary and seasonal residential communities and includes costs directly associated with the land, development and construction of these communities, including common development costs such as roads, sewers, and amenities and indirect costs such as development overhead, capitalized interest, marketing and project administration. Commercial real estate includes land for commercial and industrial uses, including land holdings near the Northwest Florida Beaches International Airport, and includes costs directly associated with the land and development costs for these properties, which also include common development costs such as roads and sewers. Leasing development property primarily includes the land and construction under development for the consolidated joint venture at Pier Park North. This development property will be reclassified as operating property as the operations continue to commence at Pier Park North.

Operating property includes property that the Company uses for daily operations and activities. The resorts and leisure operating property includes the WaterColor Inn, golf courses and marinas. Leasing operating property includes property developed by the Company and used for retail and commercial rental purposes, including property in our consolidated joint venture at Pier Park North. Operating property may be sold in the future as part of the Company’s principal real estate business. Forestry operating property includes the Company’s timberlands.

The Company had capitalized indirect development costs, primarily related to the consolidated joint venture at Pier Park North, of less than $0.1 million and $0.2 million, during the three months ended June 30, 2015 and 2014, respectively, and $0.1 million and $0.5 million, during the six months ended June 30, 2015 and 2014, respectively.